Abstract: We prove that the prime radical of the free Malcev algebra of rank more than two over a field of characteristic coincides with the set of all universally Engelian elements of . Moreover, let be the ideal of consisting of all stable identities of the split simple 7-dimensional Malcev algebra over . It is proved that , where is the Jacobian ideal of . Similar results were proved by I. Shestakov and E. Zelmanov for free alternative and free Jordan algebras.